By Dan Rosenzweig-Ziff
WASHINGTON, Aug 4 (Reuters) – Todd Blanche cleared a major hurdle on Tuesday on his path to nomination for U.S. attorney general, as Republicans voted to advance him out of committee on a party-line vote. But questions persist about a deal he said would end President Donald Trump’s “anti-weaponization” fund and narrow an agreement giving Trump immunity from audits of past tax returns.
Blanche, Trump’s former personal lawyer and the current acting attorney general, agreed on Sunday to amend the terms of the fund and the tax immunity deal in order to win the backing of two holdout Republican senators, although critics say the amendments do not go far enough.
He issued orders that he said ended the fund, and directed that the related tax immunity agreement only barred audits on past tax returns of Trump, his son and their family business. The agreement, though, allows for tax audits on future tax returns.
“You even have conservatives coming out and saying these are not worth the paper they are drawn on,” Senator Cory Booker said at Tuesday’s hearing. “We got nothing. No guarantees whatsoever that this slush fund still can’t go forward. We got nothing that the president of the United States can’t cheat on his taxes and have no accountability.”
The holdout senators, John Cornyn and Thom Tillis, said on Monday they were pleased with the agreement and would vote to advance Blanche’s nomination through the Judiciary Committee, arguing Blanche could offer stability to the department. Approval by the committee clears the way for a Senate confirmation vote later this week.
“Given this agreement with Mr. Blanche, I expect the department to live up to this in future litigation,” Cornyn said at Tuesday’s hearing, thanking Blanche for being willing to work with him and Tillis to find a solution.
Tillis echoed Cornyn’s sentiment, and said both Democrats and Republicans have politicized the Justice Department to go after their perceived enemies of the opposing side.
“I thought the fund was an insult,” Tillis said. “It’s been rescinded, and I am satisfied.”
Critics called the deal Blanche struck a “farce,” arguing it does not prevent Trump from resurrecting the fund later and does not resolve the ethics of Trump’s administration shielding him from tax scrutiny. Some called on Republicans to pass legislation that would explicitly bar the fund from being revived and end Trump’s tax protections.
The dispute over Trump’s tax immunity and the $1.8 billion weaponization fund stems from a settlement of Trump’s $10 billion lawsuit against the IRS.
The fund is meant to support people who claim they have been unfairly prosecuted for their political activities, and could benefit Trump allies who have said they were targeted by the federal government for their involvement in the January 6, 2021 attack on the U.S. Capitol.
“REAL COMMITMENTS”
Critics have called it a Republican slush fund and noted that Trump’s personal lawyers did not sign off on Blanche’s order to end it, even though the original settlement requires approval from all parties to make any changes. Trump’s lawyers have not publicly commented on the matter.
The Justice Department and Blanche have refused in court to say the weaponization fund could never be resurrected, and Trump has repeatedly said how much he loves the idea of the payouts.
“The cop-beaters fund can easily be revived with a new DOJ order the day after Mr. Blanche is confirmed,” said Senator Dick Durbin, the top Democrat on the Senate Judiciary Committee. “Indeed, the president himself has telegraphed his plan.”
Durbin also alleged Blanche committed perjury during his confirmation hearing by claiming he did not tell Durbin that the fund was a mistake, though Durbin says Blanche did, setting a possible foundation for an investigation should Democrats retake the Senate this fall.
The Judiciary Committee postponed its confirmation vote last week after Cornyn and Tillis demanded written proof that the fund was dead and the tax immunity deal would be scaled back.
The demands from Cornyn and Tillis, who said they represented views held by fellow Republican senators, were among the highest-profile Republican revolts against the president in his second term.
Democracy Forward, an advocacy group which is suing over the fund, sent a letter Monday asking the DOJ to declare the program permanently canceled but has not yet received a response.
Under Blanche’s leadership, the Justice Department has prosecuted Trump’s perceived enemies while upending long-standing norms of the department’s independence. Blanche also oversaw the release of files related to late sex offender Jeffrey Epstein. Republican lawmakers have also praised Blanche over declining crime numbers.
(Reporting by Dan Rosenzweig-Ziff; editing by Andy Sullivan, Stephen Coates and Alistair Bell)
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